How a new approach to finance and tax is turbocharging Accelleron

In the small Swiss town of Baden, not far from Zurich, sits the headquarters of Accelleron, an entrepreneurial company built on a long history. A carve-out of ABB, Accelleron manufactures turbochargers, fuel injectors and innovative digital technologies that power engines and help keep our world moving. In 2023, the company generated sales of US $915m.

In 2022, Accelleron had newly-separated from ABB and was at the beginning of a challenging journey. Achieving its vision to become a leader in industrial solutions required first building a strong foundation for the standalone business. Chief Financial Officer Adrian Grossenbacher faced a tight deadline of only 12 months to set up fully functioning finance and tax operations for each of the Accelleron locations, to meet transition service agreement deadlines and prepare for spin-off from ABB.

For Grossenbacher, the task of building a global finance function from the ground up was an opportunity to shape the company’s future through a more data-driven, agile approach. But he knew he couldn’t do it alone. Grossenbacher convinced colleagues that partnering with a managed services provider made sense, partly   because of time and talent constraints.

He explains, “We are present in more than 50 countries with close to 3,000 employees. Our smallest unit has two to three employees, while our largest has close to 1,000. So, we have a large footprint.”

“Additionally, we had a very tight timeline to de-couple ourselves from our former parent company and become a standalone business. On top of that, we had to roll out a global enterprise resource planning (ERP) system within  12 months, in five waves, in almost all countries. These were the conditions that guided me towards a managed services approach.”

Grossenbacher was also realistic about the complexity of the task at hand. He was keen to bring in a team with deep experience and knowledge of both the technology and all associated finance and tax processes.

Beyond these considerations, Grossenbacher was eager to find a partner to help him build a next-generation finance and tax function – one with the ability to add more strategic value to the business. “I’m a CFO who’s always looked at my role through the lens of the broader business,” he says. “I wanted to create a function that offered insights and intelligence beyond finance.

“At its heart, Accelleron is a service business – about 75% of our revenue comes from service activity. An intelligent, connected finance function could help us get closer to our global customers, understand their needs and drive the  innovation that boosts revenue.”

With the stakes so high, Grossenbacher set in place a rigorous process for selecting the right partner. An EY team was chosen because of its collective knowledge and experience, breadth of talent and, Grossenbacher admits, willingness to push him and his team to look at issues differently.

“EY constantly challenged us,” he explains. “I felt there was a lot of expertise on the other side of the table that could benefit this project. I also liked their collaborative, modern way of working, and knew they could bring the fast pace required.”

The EY team, led by Thilo Gauch and John Nealon, worked with Grossenbacher to quickly assemble the project around three pillars, delivered via a Managed Services model:

• Accounting and finance – building and implementing processes such as record to report, procure to pay, and order to cash
• Tax – helping achieve compliance of Accelleron operations across all global jurisdictions
• SAP S/4HANA® rollout support – designing finance processes and supporting the deployment of the ERP system in alignment with business goals

Nealon explains the EY approach, “The story of Accelleron is one of continuous transformation. We realized that supporting this required EY to bring the full breadth of our domain knowledge and global network. But we also recognized the need for a small, focused group, that worked side-by-side with the Accelleron team.”

“In today’s environment, finance and tax operations need to be more integrated than ever. Business stakeholders demand better insights for decision-making, and regulatory authorities require more (and better quality) data for evolving compliance – ranging from tax returns in the era of BEPS, to e-invoicing, sustainability (ESG) reporting, and other digital reporting requirements.

“The potential of AI to automate and improve data quality will unlock efficiencies in end-to-end processes and enable finance leaders to drive more value for the business,” he says.

It has taken less than two years from separation to stability for Accelleron, with the organization now focusing on the next stage of its journey. This includes ambitious growth plans, such as global expansion through strategic acquisitions and partnerships. As the company that patented the first turbocharger more than 100 years ago, Accelleron is also at the forefront of creating the more efficient, sustainable turbocharging technologies that will power a cleaner world.

Grossenbacher says finance and tax are key to all of this.

“As a CFO your license to operate is a well-run finance and tax function. And we have jointly accomplished this. That provides a solid foundation for me and my team to provide co-piloting activities to our colleagues . . . and drive value creation.”

He says he is excited about Accelleron’s future, encouraged by the company’s journey so far to secure business continuity, optimize growth and build a platform for continuous transformation.

“My goals are ultimately the goals of the business – providing a reliable … organization is absolutely key. Furthermore, I like to personally grow, day in and day out. I want to learn more, and this journey has allowed me this. I’m very much looking forward to continuing that.”